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Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked
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To: kathyh who wrote (56948)9/3/1999 10:56:00 AM
From: QuietWon   of 90042
 
To: A@P Trader who wrote (44053)
From: QuietWon Thursday, Sep 2 1999 9:55PM ET
Reply # of 44082

Another short opp suggestion. This will take time. Or do it closer to quarterly earnings.
Insurance companies which have longer term liabilities (banks don't have have this - a bank deposit is callable in 7 days or less, for example) invest in longer term assets like bonds.

As interest rates rise, the market value of the assets goes down, and if assets need to be sold, they will be sold at a market value loss.

Additionally, some firms providing services to that industry may experience a slowdown as year end occurs and if interest rates rise further.

Here are some insurers and service providers (as a side note, look at how Conseco has dived - is it following into the likes of Penn Financial which was $39 in January'98 and by Nov'98 was about $1 ??)

CLAI OXHP PMS SSNC MNY CNC CI AIG AET NFS AGC PL HLI ALRE SCOT ESREF AXA ING AEG SCO PLFE CSLI JP LNC RGA CNNG CNA UHCO ACL SPC REL KCLI

Another interesting note is Fairfax Financial in Canada (FFH.tse) was over $600 earlier this year and has dropped to under $250 -- why?? They have been "investing" in puts on the market. I guess Anthony should go and teach them how to win on stocks going down.
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